Annexure II - AERA

Annexure II-B
i. State Support Agreement dated so" September 2003 between GoAP & HIAL
ii. Land Lease Agreement dated so" September 2003 between GoAP & HIAL
iii. Concession Agreement (CA) for development, construction, operation and
maintenance of the Hyderabad Airport, was entered into between Gol through
the Ministry of Civil Aviation (MoCA) and HIAL, on zo" December 2004.
5. As per Article 2.1 of the above said Concession Agreement, the Scope of the Project
includes development and construction of the Airport, operations and maintenance of
the Airport and performance of the Airport Activities and Non-Airport Activities.
It is clear from the above that the scope of the Project indeed constitutes two
components viz., [a] Airport Activities and [b] Non-Airport Activ ities. In order to
implement these projects, the GoAP gave land on lease basis to GHIAL. It is submitted
that the land was acquired and leased by GoAP as part of its State Support obligation for
the Project since the acquisition of the land by GHIAL would have rendered the project
unfeasible . The purpose of the land under Land Lease Agreement is to develop the
above said Project comprising of [a] Airport Activities and [b] Non-Airport Activities. The
Airport Activities indeed include all the aeronautical, non-aeronautical and airport
centric activities at the Airport as set out in the Schedule 3, part 1 of CA.
The Master Plan depicting the intended land utilization to cater to both Airport and
Non-Airport Activities was annexed to the Concession Agreement as Attachment 1.
6. Accordingly, the Airport was constructed and commissioned in March 2008. Thereafter
MoCA approved levy ofUDF @ Rs.1000/- (inclusive oftaxes) per international departing
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passenger w.e.f. April 2008 and @Rs. 375/- (inclusive of taxes) per departing
domestic passenger w.e.f is" August 2008 (vide letters No.AV.20015/03/2003-AAI
dated zs" February 2008 and l\lo.AV.20036/28/2004-AAI (VoI.IV) dated is" August
2008 respectively), on ad-hoc basis.
7. HIAL, vide its letter no. GHIAL/UDF/Domestic/04/2008 dated 01 5t September 2008, had
submitted that in its original business plan furnished to the Ministry, the average UDF
amount was arrived @ Rs.725/- per passenger for both international and domestic
passengers and since the UDF for international passengers was approved for Rs.1000/by
the Ministry, the corresponding amount for domestic passengers should be Rs.600/so
as to be in consonance with its business plan. HIAL subm itted that in the meanwhile,
it had started collecting the provisionally approved domestic UDF @ Rs .375/- departing
passenger, under protest. HIAL also stated that as a result of the lower UDF approved
for domestic passengers, it was incurring a substantial loss.
8. Pursuant to the enactment of the "The Airports Economic Regulatory Authority of India
Act, 2008" on os" December 2008 the Airports Economic Regulatory Authority
CP No. 9/2013-14/T-12023(14)/1/2012- Tariff- Vol - III Annexure II-B Page 2 of 51
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